GSEs Launch Uniform Security

Fannie Mae and Freddie Mac today officially launched the Uniform Mortgage-Backed Security, which will replace the current TBA-eligible MBS issued by the two GSEs. The UMBS will be issued by Common Securitization Solutions, Fannie and Freddie’s joint venture. The launch is the latest step in a years-long effort to issue a common security.

FHFA Deputy Director Robert Fishman noted that the launch is “a significant milestone that combines the separate Fannie Mae and Freddie Mac to-be-announced markets into one, bringing additional liquidity and efficiency to the market. By addressing structural issues and trading disparities, the UMBS will benefit taxpayers and the nation’s housing finance system.”